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Drilling contractor of large oil, gas deposit defined in Kazakhstan

KMG Nabors Drilling Company LLP will carry out drilling work at the Tengiz field in Kazakhstan, said the message of the Kazakh national oil and gas company KazMunayGas (KMG).

The new joint venture (JV) on drilling was created by KMG Drilling & Services LLP (subsidiary of KMG) and Nabors Drilling International Ltd (the world leader in oil and gas drilling).

Signing of documents on the establishment of the joint venture took place on April 21 with the participation of First Deputy Energy Minister of Kazakhstan Uzakbay Karabalin and Chairman of the Board KazMunayGas Sauat Mynbayev.

"The new joint venture will conduct drilling at the Tengiz field within the framework of the current work program and project of the future expansion," said the message.

LLP KMG Nabors Drilling Company is being created as part of the realization of the LLP Tengizchevroil's commitments to Kazakhstan's government, which are reflected in the relevant bilateral memorandum of understanding.

Under the memorandum, Tengizchevroil will finance the costs related with the acquisition of new drilling rigs for the JV KMG Nabors Drilling Company.

"The creation of the joint venture will allow increasing the Kazakh content, adopting experience, technologies and Nabors management system, and working efficiently in the long run on large oil and gas projects in Kazakhstan as a drilling contractor," read the message.

The LLP KMG Nabors Drilling Company's head office will be located in the city of Atyrau, while the company itself will give an opportunity to create up to 200 jobs in the region for highly skilled personnel, where 90 percent of the staff will be the citizens of Kazakhstan.

Tengizchevroil operates on the license area in Kazakhstan which includes the super-giant Tengiz field and Korolevskoe field which is smaller, but has large reserve.

The recoverable reserves of Tengiz and Korolevskoe fields are estimated at 750 million - 1.1 billion metric tons of oil. The total explored reserve in the drilled and undrilled areas of the collector of Tengiz field is estimated at 3.1 billion metric tons, or 26 billion barrels.

The volume of oil reserve at Korolevskoe field is estimated at 188 million metric tons, or 1.5 billion barrels, which accounts for one-sixth of Tengiz field's reserve.